Will suspension of F1 have any effect on H1B application?

I am currently an F1 student. I am suspended for the period of Feb2010 to May2010.

I recently got a offer from a company and they are applying for H1B for me in April 2010.

Due to suspension, my SEVIS record will be terminated. As I have one more course to finish and graduate, I will be coming back in May 2010 with a new SEVIS number and will be graduating in July 2010.

As I will be in F1 academic suspension status in April, while my company applies for H1B, and as I will be returning back to US in May with a new SEVIS number, will that have any effect on my H1B application?

It sounds like you are going abroad and returning with a new SEVIS number/new I-20, so no gap in status. I don't think status would be the problem here - at worst, yopu could obtain the H-1B stamp abroad and reenter.

The problem is, it doesn't sound like you will graduate from your program until after the H-1B petition would be filed. If this is a Master's program and you plan to qualify based on your existing bachelor's degree, this may not be a problem - but if this is a Bachelor's program, you may not be eligible for the H-1b in time.

I have obtained H-1B visas for out of status F-1 students. A violation of F-1 status won't directly impact the H-1B petition, but if selected, you may need to depart the U.S. and return on the H-1B visa prior to the H-1B start date. Consult with an experienced immigration attorney to discuss the nuances of this situation.